The mainland's third state-approved closed-end mutual fund will open for sale to retail investors on Wednesday as Beijing hastens the mutual fund experiment in anticipation of strong demand for the product.
The Xinghua Fund, to be managed by China Securities, will be sold at 1.01 yuan (about 94 cents) per unit, including a 1 per cent placement fee. Corporates are banned from subscribing.
The closed-end fund to be listed in Shanghai was worth two billion yuan and would mature in 15 years, a China Securities official said.
China Fund Management, with a registered share capital of 70 million yuan, will manage the fund while the China Construction Bank will be the custodian bank.
The fund management company is held 55 per cent by China Securities, 38 per cent by Beijing Securities Corp and 7 per cent by the Chinese Science and Technology International Trust and Investment Corp.
The Xinghua Fund will list alongside China Guotai Securities-sponsored Jintai Fund. China Southern Securities-sponsored Kaiyuan Fund is listed in Shenzhen.
